Fitch changes view on South African banks

Fitch Ratings said it revised the outlooks on the long-term issuer default ratings of five South African banks, including Absa Bank Ltd., FirstRand Bank Ltd., Investec Bank Ltd., Nedbank Ltd. and Standard Bank of South Africa Ltd., to negative from stable and affirmed the issuer default ratings at BB+.

Fitch also revised the outlooks on the long-term issuer default ratings of four South African bank holding companies, including Absa Group Ltd., Investec Ltd., Nedbank Group Ltd. and Standard Bank Group Ltd., to negative from stable and affirmed the issuer default ratings at BB+.

The agency said the actions follow the revision of the outlook on South Africa's long-term issuer default ratings to negative from stable on July 26.

Fitch said it considers that the South African banks cannot be rated above the South African sovereign (BB+/negative), given the concentration of their activities within South Africa, including significant exposure to government securities and lending to the public sector.

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